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Home>Levelset Community>Legal Help>The client thought we were done on the job, but we're not. Do we file another pre lien?

The client thought we were done on the job, but we're not. Do we file another pre lien?

ArizonaLien WaiversPreliminary NoticeRight to Lien

customer thought they where done on job, so we gave them a conditional on final payment. Then they need to continue on job .

1 reply

Jun 13, 2019
That's an interesting question. If a separate agreement was entered into in order to perform the additional work, then another preliminary notice might be necessary in order to preserve lien rights - especially if the contract were with a different customer-subcontractor (which does not seem to be the case here). As for additional work provided for the same customer - under ARS § 33-992.01(G), only one preliminary notice is required for all work performed, unless the total value of the work provided or to be provided is more than 20% over the original estimate for work provided which was included in the original preliminary notice.

As far as preserving the right to lien after a conditional final waiver has been submitted, and after the payment identified in that waiver has been made - that might be a tough situation. As indicated by the title, a final conditional waiver waives all lien rights on the project upon receipt of the payment identified in that notice. So, if a final conditional waiver is given, and if payment is received for that waiver, a lien claimant could be left without lien rights for the remainder of their work.

When additional work is required after a final waiver has been given, it might be wise to execute an additional contract and to send a preliminary notice based on that contract. By going about it that way, it'd be easier to ensure that lien rights would be preserved for any additional work performed. Otherwise, a construction business might be performing work without the security of lien rights - though, in some situations, that might be acceptable.

For more information on Arizona notices, waivers, and lien rights, these resources will be valuable:
(1) Arizona Lien and Notice Overviews, FAQs, and Statutes
(2) Arizona Lien Waivers Overview
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